Farmers Swarm Over Capitol Hill; Results Questionable

March 22, 2000

Farmers Protest on Capitol Hill; Results Questionable. More than 2,000 farmers, ranchers and rural business people were in Washington this week to lobby Congress for changes in the 1996 farm law in hopes of higher farm prices. The two days gave Agriculture Secretary Dan Glickman a chance to tout the Clinton Administration's plan for supplementing farm income in times of low prices; it gave Sen. Kent Conrad (D-ND) a chance to promote his farm income legislation designed to equate U.S. farm subsidies with European subsidies, and it gave Sen. Byron Dorgan (D-ND) a chance to tell the Senate of farmers' plight in the face of low prices. But any farm bill changes remain doubtful, though another emergency cash infusion seems probable.

Glickman urged the farmers to advocate changes in the 1996 farm law and outlined the administration's preferences for a targeted supplemental income provision that would allow limited but direct payments to farmers when prices are below a certain threshold.

Leland Swenson, president of the National Farmers Union, criticized Congress' "Band-Aid" approach to shoring up farm income with emergency spending bills in lieu of dramatic changes in farm policy.

NFU has advocated "fair and open competition" in markets with an emphasis on closely monitoring mergers and acquisitions among agricultural and agribusiness corporations; compensation for producers financially injured by currency variances and valuations; establishment of an international grain reserve and overhaul of the federal crop insurance program that will allow "effective and affordable" policies.

Sen. Paul Wellstone (D-MN) who had worked with the various groups to bring the event to Washington, said, "It is past time to rewrite the farm bill. If we put this off any longer it will be too late for rural America ... The status quo in rural America is untenable."

Wellstone said increasing economic concentration in the agriculture sector, persistently low prices for farm commodities, bad weather, drought and increasing fuel prices have caused an "economic convulsion" with widespread social consequences for many rural areas. He has advocated increasing the loan rate on major commodities, stronger antitrust action for agricultural mergers and acquisitions and federal crop insurance reform.

The event was sponsored by labor, religious and farm groups as well as the National Rural Electric Cooperative Association. The purpose, the groups said in a statement, was to show Congress "that we can no longer stay the course. Our nation's farm and rural policies have not worked as they should ... rural Americans are facing their toughest times in recent memory ... we will send a message to Congress that our farm and rural policies must be revamped."

Conrad called on those attending the "Rally for Rural America" to get behind his "Farm Income and Trade Equity Act," or FITE farm bill he introduced almost a year ago. Farmers could opt out of the 1996 farm law and into Conrad's FITE program to receive marketing loans at 100% of the five-year Olympic average market prices on major crops. USDA then would calculate the European Union's level of support and determine a payment for U.S. farmers to make up the difference between the U.S. loan rate and the EU support.

In a floor speech prior to attending the rally Monday, Dorgan said farmers and small towns in Europe "are doing fine. There is life; one can feel it. One can sense it." That's because Europe "has decided that as a matter of public policy, the kind of economy they want is an economy that has food production based on the family unit ... Our trade negotiators look at trade through the pristine view of one word -- markets -- as though it doesn't have anything to do with families or communities."

However, there has not been much sentiment in either the Senate or House to overhaul the 1996 farm law. House Agriculture Committee Chairman Larry Combest (R-TX) has said he hopes the field hearings now being conducted by the committee will reveal a consensus among farm interests for a direction for farm policy. Senate Agriculture Committee Chairman Richard Lugar (R-IN) has shown no inclination toward changes either.

Crop insurance reform has been approved in the House and the Senate Agriculture Committee has passed its version. The bill is awaiting Senate passage, with action possible as soon as today. Any tinkering with antitrust laws probably will be minimal at most. Legislation is pending to give USDA a greater role in reviewing and influencing agriculture mergers and acquisitions.